Retirement discounts are getting closer

For all major funds there is not enough cash in hand. The pension funds must have a coverage of at least 105 percent. That means they have to sit in cash for every euro, 1.05 euro; more than that so they actually need.

At present this is not the case: ABP now has 90 cents in cash, make pension fund Zorg en Welzijn only 89 cents. The probability that the pensions (and the building) should be reduced in 2017, is thereby increasing. The position of the coverage on December 31, 2016 determines whether this will really happen.

ABP, see the largest pension fund in the Netherlands, the funding during the quarter by 7 points decrease from 97.2 percent to 90.4 percent now. ABP comes from below 90 percent, then it should be reduced there. Care and Welfare dropped 6 percentage points away from 95.1 percent to 88.9 percent now. When some 'younger' pension fund Zorg en Welzijn is the absolute bottom 87 percent.

Also most other pension funds are in trouble and the rules in the coming years will only get tougher. About 10 years have they even 1.25 euros in cash for every euro they spend. That is a funding ratio of 125 percent. If not, then they have to reduce pensions.

The pension funds warn discounts
Peter Borgdorff, director of health and welfare, puts it this way: "Interest rates are still low and remains still for quite a while. That is bad for the pensions of our members. If we take stock after the first quarter, there remains a significant chance that we have to reduce pensions in 2017 for the first time in our existence. Which any reduction we may or smearing over ten years. But it remains a bad message to everyone who receives a pension or builds. "

Also ABP's financial position remains a concern, says Corien Wortmann-Kool, president of ABP. "We are in the danger zone, which means that the risk of reduction in the pension remains a strong presence in 2017. That would be disappointing for our participants. For more because we pensions have not index recent years, with. ABP is committed many in the industry, for modernization of the pension system. Not because it solves the financial problems, but because it is necessary. "

"The critical limit at which a reduction can not be avoided anymore, is about 90 percent. We are very close, '' said Eric Uijen, general director of the Pension Fund of the Metalektro (PME). The measure is PME meanwhile dropped to 90.8 percent. of the major funds is only the pension fund for the construction still reasonable for, with a coverage ratio of 103.9 percent.

Down retired, but retirement is not touched
The pension federation, which represents all the funds, it argues that if pension cuts are on the agenda next year, the financial downturn in 2017 for many retirees still limited to a few euros per month. This is because pension funds may spread the cuts over ten years. In addition, says the federation, that the reduction only applies to retirement and not to the state pension: it remains at the same level.

http: //www.metronieuws.nl/ RTL Z / Erik Rezelman Photo: RTL